TEOs with an indicative allocation of DQ3-7 funding submit completed Mix of Provision (MoP) template(s) and Educational Performance Indicator Commitments (EPICs) template(s) to us via Workspace 2. We approve the MoP and EPICs through the Investment Plan (Plan) approval process.

We monitor TEOs’ reported delivery against these commitments and other requirements and expectations that we set TEOs.

Reporting

All DQ3-7 funded TEOs report to us through the:

• Single Data Return (SDR), and/or
• Industry Training Register (ITR).

We use data submitted to monitor performance, publish performance information, and report tertiary education statistics.

TEO reporting is managed through the following channels:

• TEOs report provider-based DQ3-7 in their SDR via Services for Tertiary Education Organisations (STEO).
• TEOs report work-based DQ3-7 in their ITR, which is interfaced directly from their Training Management System.
• TEOs report commitments and other fund delivery by completing templates, accessed either through Workspace 2 or STEO.

During the calendar year, each TEO must submit SDRs as per Single Data Return submission dates. They must also submit any relevant Workspace 2 templates (Assessment & Verification mode, Pathway to Work mode, and Mixed Mode (Off-job)) in line with the SDR submission dates.

ITR submitters must ensure that their data is as current as possible at each of the three cut-off dates each year: 31 March (for both the previous year and the current year), 31 August and 31 January (for the previous year).

For full details of the data requirements and reporting dates, see:

• Single Data Return Manual
• Industry Training Register User Guide.

For further information about reporting, please see the DQ3-7 funding conditions for the relevant year.

Source of Funding reporting

Domestic provider-based learners in a programme approved to access DQ3-7 funding must be reported under Source of Funding (SoF) 37.

SoF 03 must only be used to report course enrolments in qualifications not approved in STEO as eligible to access DQ3-7 funding.

This is regardless of whether some of the provision will be unfunded.

* All funded or unfunded Mix of Provision (MoP) EFTLs.

WorkSpace 2 (DXP) and Qlik updates for UFS reporting

We have an interim solution for the Unified Funding System (UFS) data exchange (DXP) to support the UFS, which went live on 1 January 2023. Our interim solution aims to minimise any system impacts for our providers and student management system vendors. To achieve this, we will use existing tools and data as much we can. We are planning to deliver a longer-term solution from 2025.

For more information see Tools and data – Unified Funding System.

Monitoring

We monitor TEO performance and practices to understand TEO performance in the sector, and to inform our decisions about future funding a TEO may receive.

For minimum performance standards, see the 2023 DQ3-7 funding conditions for the relevant year.

Educational Performance Indicators (EPIs)

We monitor the performance of each TEO against the following Educational Performance Indicators (EPIs):

• cohort-based qualification and programme completions
• cohort-based first-year retention (for New Zealand Apprenticeships only under work-based provision)
• course completions and credit achievement, and
• learner progression from Levels 1–4 to higher level study (provider-based only).

TEOs can view their EPIs, and the EPIs of other UFS-funded TEOs, using the My Performance  and  Tertiary Performance information products in Ngā Kete.

For further information on how EPIs are defined and calculated, see Performance of tertiary education organisations.

EPI and Mix of Provision (MoP) commitments

We also monitor the performance of each TEO against its Investment Plan (Plan) Educational Performance Indicator Commitments (EPICs) and Mix of Provision (MoP) commitments.

Note: A TEO is responsible for notifying us of, and discussing with us, significant shifts from the agreed MoP, and the rationale, well before any such shift occurs.

Other monitoring

In addition, we monitor TEOs’:

• achievement against any other performance standards agreed in the Investment Plan, including any minimum achievement levels
• compliance with DQ3-7 funding conditions and legislative requirements
• achievement of parity with respect to participation and EPIs for target learner groups set out in the Tertiary Education Strategy, and
• achievement of other expectations that we communicate to TEOs.

Monitoring compliance with funding conditions includes but is not limited to the Annual Maximum Fee Movement requirements.

Benchmarking

Tertiary education institutions (TEIs) must participate in benchmarking, which contributes to enhancing institutional capability, and performance and sustainability in the sector.

Using the New Zealand Benchmarking Tool, TEIs can measure their performance against various educational and financial performance benchmarks. For conditions on benchmarking see the DQ3-7 funding conditions for the relevant year.

Performance consequences framework

We approve DQ3-7 funding as a total dollar value (not an EFTL volume). A TEO is expected to manage its enrolments effectively and in accordance with its Investment Plan (Plan).

We have a tolerance band for over-delivery and under-delivery, which is currently set at 99% to 105% of each year’s funding for a TEO. This is to acknowledge that the dollar value of enrolments may vary from the dollar value of the allocation approved by us.

For conditions on over-delivery see the DQ3-7 funding conditions for the relevant year.

Over-delivery

Even though we can fund over-delivery as set out in the Flexible funding section above, our tolerance threshold for over-delivery is 105%. If a TEO is not eligible for flexible funding and it delivers above the 105% threshold in a year, we reduce the TEO’s baseline funding from that year   plus two onwards.

Delivery above the 105% threshold is calculated using the TEO’s combined:

• approved allocation, and
• dollar value of its Plan-agreed unfunded provision (if any).

Each TEO is responsible for notifying us at the earliest possible opportunity to discuss this if it has actual or anticipated delivery above agreed levels.

Under-delivery

If a TEO delivers less than 99% of DQ3-7 funded provision during the year, we will recover funding. We may also reduce DQ3-7 funding to the level of actual delivery within the Plan period by making a significant Plan amendment, or by revoking or suspending some funding.

We will also consider the level of delivery achieved when determining future funding allocations.